Airlines UK comment on the announcement made by the Civil Aviation Authority that Monarch has ceased trading

Commenting on the announcement made today by the Civil Aviation Authority that Monarch has ceased trading, Tim Alderslade, Chief Executive of Airlines UK, the trade body for UK airlines, said:

“Today is a very sad day for the UK airline industry. Monarch has been taking British families away on holiday for almost 50 years and has been a well-loved brand and stalwart of UK aviation.

“Our thoughts are with the several thousand employees who face an uncertain future, and the hundreds of thousands of passengers who are currently abroad or have booked a trip and were looking forward to travelling with Monarch. The CAA and Department for Transport are working round the clock and are doing all they can to arrange the professional and speedy repatriation of stranded passengers back to the UK.  

“Today’s news goes to show the ferociously competitive and challenging environment airlines currently operate in. I sincerely hope what has befallen Monarch gives politicians pause for thought about the challenges and costs facing the airline industry, and that at all times they should be champions of a sector that is a massive UK success story and which provides untold advantages to this country in terms of the jobs and connectivity it enables.”

New report shows Scotland lagging behind European competitor nations with respect to short-haul, long-haul and direct air connectivity

Despite the establishment of an impressive number of new routes in recent years, Scotland lags behind European competitor nations with respect to short-haul, long-haul and direct air connectivity, a new report carried out by the consultancy RDC has found. The full report is available here.

Airlines and travel companies are urging the Scottish Parliament to support a 50% reduction in aviation taxes to create even more opportunities for future growth in new and existing routes, which will provide an economic boost to the country and demonstrate that Scotland is “open for business”.

The report – which was commissioned by aviation and travel associations Airlines UK and ABTA – compares Scotland to ten similar sized European nations in terms of the number of countries and destinations served. It made the following observations:

• Airlines operate direct services from Scotland to 131 destinations in 35 countries, plus indirect services to 420 destinations in 136 countries.
• Of the 11 countries, Scotland ranks 10^th in terms of countries served (9^th in terms of destinations) – ahead of only Iceland (with a population 1/20^th the size of Scotland’s). Two competitor countries – Ireland and Norway – are smaller in terms of population but have measurably greater connectivity than Scotland.
• Scotland’s weakest area is in direct long-haul connectivity, where it ranks 11^th out of 11 in terms of the number of destinations served (11), and joint 9^th in terms of the number of countries served (5).
• Scotland’s strongest area is in its indirect connectivity, where it has services to a reasonable number of European and Middle Eastern hub airports (8), which in turn facilitate services to a large number of global destinations.
• With respect to direct short-haul connectivity, Scotland ranks 10^th out of 11 in terms of countries served with direct services (30) and 7^th out of 11 in terms of destinations served (120).

The report investigates the relative connectivity of Scotland in the context of the devolution of passenger taxes and the proposed reductions in the Air Departure Tax (ADT) following its devolution to the Scottish Government. Whilst making clear that there are many reasons and factors that contribute to different levels of connectivity, not exclusively related to taxation, it concludes that:

• Scotland has by far the highest air passenger taxes of the 11 countries analysed, and of the 10 other countries only one levies a tax greater than 1/10^th of that levied in Scotland.

Airlines UK and ABTA support the stated policy of the Scottish Government to reduce ADT by 50% from April 2018, and abolish the tax when economic circumstances allow.

Tim Alderslade, Chief Executive of Airlines UK, said: “Scottish airports and the airlines operating from them have done a great job in increasing the number of countries and destinations served in recent years – and this has been borne out by the record growth that we have witnessed. Passengers now have more choice and options than ever before – whether inbound or outbound – and that is great news for Scottish tourism and companies looking to trade and do business, both domestically within the UK and overseas.

“That said, it is clear from the report that more can be done to ensure Scotland reaches its full potential and better competes with its European rivals. We support the Scottish Government’s stated goal of reducing ADT by 50% from next April, and although the report makes clear that there are many reasons and factors that contribute to connectivity, it is our view that reducing ADT will make Scotland a more attractive place for airlines to add capacity, delivering new routes and more services.”

Mark Tanzer, Chief Executive of Abta, said: “We welcome the Scottish Government’s commitment to reducing ADT, which is good news for Scottish travellers and businesses. The current levels are massively out of step with our European counterparts. We believe lower rates will help Scotland’s international competitiveness and the ability of Scottish airports to attract additional connectivity, as this report shows.

“ABTA believes the Scottish Government should implement any reduction as quickly as possible. The most effective way of ensuring the competitive benefits of any reductions are reaped is to deliver these in one hit, not to stagger any reductions over a longer period. ABTA will be encouraging the Scottish Government to take a bold approach, and to implement the full 50% reduction from 1 April 2018. This will benefit millions of Scottish holidaymakers and business travellers who currently pay the highest levels of aviation tax in Europe.”

Ryanair joins Airlines UK

Ryanair has joined Airlines UK, the industry body representing UK-registered carriers.

Ryanair will carry over 44 million customers to / from the UK this year, and joins Airlines UK as an “international airline member”, a new tier of membership that allows non-UK carriers to join the association.

Industry comments on reports showing an increase in arrests of passengers suspected of being drunk at UK airports and on flights

Commenting on reports showing an increase in arrests of passengers suspected of being drunk at UK airports and onboard aircraft, Airlines UK, the Airport Operators Association and the UK Travel Retail Forum, said in a joint statement:

“As an industry, we take the issue of disruptive passengers very seriously. Thankfully the problem of disruptive behaviour is rare, but where it does happen it can affect fellow passengers, airline crew and employees working at the airport. The industry is working hard to tackle the issue and last year launched a Code of Practice to create a common, consistent approach that co-ordinates and enhances existing efforts to prevent disruptive passenger behaviour. Government supports the Code and together we believe this is the best way to tackle this issue.

 “Disruptive behaviour, including due to excessive alcohol consumption, is not acceptable. Passengers should be aware that consequences of such behaviour could include losing a holiday because they are denied boarding through to fines, flight bans and prison sentences for the most serious offences.”

Airlines UK comments on the ongoing problems of long queues at European airports as a result of changes to security measures at the border.

Commenting on the ongoing problems of long queues at European airports as a result of changes to security measures at the border, Tim Alderslade, Chief Executive of Airlines UK, the industry body representing UK-registered carriers, said:

“Airlines UK wrote to the Department for Transport about this issue back in May, following similar problems reported at some airports, notably in southern Europe, over the busy Easter period. Ministers responded in June to say they were encouraged by the lack of any further reports of disruption since the implementation of these changes. Clearly the situation has changed markedly as we enter peak holiday season, and it is now up to the UK Government to work with industry to use whatever influence it can within the EU to persuade Schengen Member States to resource their border operations properly. This ‘resourcing up’ has failed to happen thus far and it is passengers and consumers – many of whom are from the UK – who are suffering as a consequence.”

Airlines UK comments on the announcement by Heathrow Airport on passenger charges once its new runway is built

Commenting on the announcement today by Heathrow Airport that they intend to keep passenger charges “as close as possible to current levels” once its new runway is built, Tim Alderslade, Chief Executive of Airlines UK, the industry body representing UK-registered carriers, said:

“Airlines agree with Chris Grayling that expansion at Heathrow must be delivered while keeping charges flat. The Secretary of State’s statement was an important acknowledgement that extra capacity must not just be waived through under any circumstances, at any cost.

“Heathrow is already the most expensive airport in the world and post-Brexit the UK will need to compete even more with other hubs.

“We look forward to seeing the detail behind Heathrow’s announcement. Airlines are clear that the cost of expansion that they and their customers pay for is a key factor. We need the right solution at the right price, at the right time, in order to meet the needs of customers, and over time the aim should be for charges to come down as the number of movements increase.”     

Airlines UK comments on the announcement by the Government of a new UK Aviation Strategy

Commenting on the announcement by the Government of a new UK Aviation Strategy, Tim Alderslade, Chief Executive of Airlines UK, the industry body representing UK-registered carriers, said:

“We welcome the Aviation Strategy as a sign that Government truly recognises the value and importance of aviation to the UK. We stand ready to work with and support Ministers in developing this plan.

 “For UK airlines we are looking for a Strategy that will, amongst other key issues, assess the need for a substantial reduction in or abolition of Air Passenger Duty, the highest tax on air travel in the world, the requirement for a well-funded and effective border operation, opportunities to improve surface access and the current rules governing charges at airports. To successfully tackle these issues – the responsibility for some of which lies outside the Department for Transport – will require effective and considered engagement across Whitehall, something we haven’t always seen.

 “If the Strategy can address and deliver actions on some of these key issues it will prove to have been a valuable exercise. We would caution, though, that the Strategy process is kept as simple as possible, given the Government’s already packed aviation agenda. The pressing issues of delivering an expanded Heathrow whilst keeping the airport honest on cost and affordability, working with industry and community groups on modernising UK airspace, and protecting existing EU and international market access and our continued membership of the aviation safety agency EASA during the upcoming Brexit negotiations, must remain front and centre in the Government’s thinking.”

Airlines UK respond to Sunday Times article on Brexit and aviation market access

Commenting on a Sunday Times article (16/07/17) on the impact of Brexit on the UK airline industry and the selling of air tickets before March 2019, Tim Alderslade, Chief Executive of Airlines UK, the industry body representing UK-registered carriers, said:

“Aviation provides important economic connections which must continue after the UK leaves the EU. We look forward to the EU and UK reaching an agreement as soon as possible that allows consumers and businesses from all European countries to continue to travel to and from the UK and around Europe just as they do today. It also means protecting current market access to and from the US and international destinations. 

“The UK is the 3rd largest aviation market in the world, behind only the United States and China, with connections to over 370 international destinations, and within the EU we are the largest by far.  Aviation is an enabler of economic growth and jobs, it is not a traded good. People use airlines to get somewhere and to do something. This means that aviation brings value to both the UK and the EU, it is not only a British or an EU export. There is clearly an incentive, therefore, for both sides to conclude an agreement sooner rather than later, to provide clarity to both consumers and airlines.” 

Airlines UK comment on the new regime for night flights at Heathrow, Gatwick and Stansted airports

Commenting on the publication of the Government’s decision on the new regime for night flights at Heathrow, Gatwick and Stansted airports, Tim Alderslade, Chief Executive of Airlines UK, the industry body representing UK-registered carriers, said:

“Airlines – and manufacturers – have worked hard over previous night flight regimes to invest in the development and operation of aircraft technology to reduce noise. Our member airlines have introduced over 470 new, quieter aircraft into service in the last 10 years. This is set to continue with a further 400 new aircraft still on order. This represents a combined investment by UK airlines of around £80 billion.

 “We are concerned that the Government’s approach to night flights, as announced today, will no longer incentivise such investment in the future and penalise those carriers who have made early investment decisions involving aircraft now being included in restrictions.”

Airlines UK Chairman speaks at The Aviation Reception

Jane Middleton, Chairman of Airlines UK, addressed the Aviation Reception hosted in the Houses of Parliament on Tuesday 11th July. The event was supported by Airlines UK, ABTA, AOA, Bar-UK, IATA and Sustainable Aviation. Jane’s speech can be found below.

“On behalf of Airlines UK and our airline members, I’m delighted to welcome you to the Aviation Reception along with Karen and Mark this afternoon.

Before I begin, I’d like to take this opportunity to thank the other supporters of this event and particularly from an airline perspective I must highlight the support of IATA and BAR-UK for this reception. Combined, our three organisations represent virtually the entire UK and global airline sector. For clarity, that’s the airlines which facilitate trade and connect businesses, friends, families and visitors from all across the UK to the rest of the world.

As many of you are aware the list of key policy areas facing our industry at this time is extensive. However, today I want to focus on just three and it will come as no surprise that one of these is Brexit.

Airlines UK members are clear they want the UK to retain current market access to the EU, US and international destinations and for the Government to prioritise aviation issues in the Brexit negotiations. From the excellent dialogue we have had across Whitehall in recent months we recognise this is a high priority for Government and we look forward to continuing discussions.

In addition, there is a clear desire from UK industry to continue our membership of the European Aviation Safety Agency (EASA). With all the EASA rules and regulations continuing to be applicable to UK operators and companies whilst the UK maintains full voting rights within EASA.

The second issue is the Airports National Policy Statement – the draft of which the Government released earlier this year. Airlines UK responded in detail to a number of questions raised in the document, but we were more concerned with something the NPS did not fully address: the issue of cost and affordability.

Although we have been reassured by previous comments from the Secretary of State that the Government is looking for the “right scheme at the right price”, we were disappointed that the draft NPS did not adequately take into account the issue of affordability. Our members do not support expansion at any price and any new infrastructure must be cost effective. Airline support for expansion at Heathrow is conditional upon charges being kept at current levels with the ambition for lower charges over time, and carriers reserve the right to withdraw their support if this does not happen. In addition, we feel there should be greater emphasis on the consumer – the manner in which consumers will be properly represented should be detailed explicitly within the NPS.  

The third area is the Aviation Strategy. We would urge that the process for the strategy is kept as simple as possible. We stand ready to work with and support the Government as it prepares to publish a series of Green Papers in the coming months, but there are several pressing areas that Ministers should be focusing on in the short-term – these include delivering expansion at Heathrow, modernising our airspace and working with the industry to improve operational resilience. There is no doubt that the Strategy is a useful opportunity to determine how best the Government can support our sector, however it must not become a distraction that hinders progress in the key areas.    

I am delighted to introduce the man responsible for delivering many of the things I have mentioned – Lord Callanan. Appointed Aviation Minister less than two weeks ago we welcome the opportunity to lay out our stall and hear from him here today. Please join me in welcoming the new Minister for Aviation – Lord Callanan.”